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Notes to editors

1. The dispute is about the pay settlement for staff in Network Rail’s operations and customer services, projects and engineering and support functions 2. We’ve been negotiating with the unions on this pay settlement since 13 February 2006 3. Network Rail has offered a three-year deal including above-inflation pay increases, higher travel subsidies and the implementation of the 35-hour working week 4. Pay increases: - Year 1 - 3.2% plus a lump sum payment of £250 in year one - Year 2 - the Retail Price Index (RPI), plus a lump sum payment of £300 and full implementation of the 35-hour week (equivalent to an additional 2.78% hourly rate increase) in year two. RPI is currently 2.4% and has been at this figure for three months. - Year 3 - RPI plus a lump sum payment of £350 in year three 5. Higher travel subsidies and London allowances: - Increases to the travel subsidy over three years to 40%, 45% and 50%, along with increased maximum subsidies - Increases to London allowances in years two and three 6. Implementation of 35-hour working week: - Will mean higher hourly rates and will lead to higher earnings for most of our employees. The implementation of the 35-hour week from April 2007 equates to an increase of 2.78% on the hourly rate as employees will receive the same basic salary for working a 35-hour week as previously for a 36-hour week 7. The RMT and the TSSA decided to conduct a referendum of members, seeking a mandate for industrial action.